Concerns about weak demand for iPhones are beginning to weaken Apple (AAPL.US) shares hit a record high

The Zhitong Finance App learned that on Tuesday, Apple (AAPL.US) stock prices rose against the market as concerns about weak iPhone demand began to wane.

The stock has been rising for two consecutive days, with an increase of around 3% during this period. According to Dow Jones market data, Apple's stock price rose 1.1% to $233.85 on Tuesday, the highest closing price since July 16. In the intraday period, the stock hit a record high of $237.49. The Nasdaq Composite Index fell 1%, mainly due to the disappointing outlook published by ASML.US (ASML.US), which led to a general decline in the entire technology sector.

For Apple investors, this period has been complicated, especially with regard to the outlook for iPhone demand. They spent weeks analyzing changing demand data published by different research institutions and analysts. However, optimism from Wall Street analysts seems to have driven Apple's share price higher this week.

Apple announced the launch of the generative artificial intelligence software Apple Intelligence in June. Consumers and investors are excited about this major product update. Since then, analysts have continued to discuss whether the iPhone 16 released in September this year will trigger a wave of user upgrades, and everyone is snapping up phones equipped with the new technology.

However, when the new iPhone was released, Apple also announced that Apple Intelligence had not yet launched with it. The artificial intelligence software is expected to be available sometime this month and will launch in other countries over the next few months. The release of this highly anticipated software has been delayed, causing many Wall Streeters to doubt that the major upgrade cycle for users may be delayed by at least a year.

However, Evercore ISI analyst Amit Daryanani wrote in a research report on Monday, “The phased introduction of AI features will lead to a longer and stronger iPhone upgrade cycle, as the release of new features and new markets will have a strong word-of-mouth effect.” He gave Apple stock a rating of “outperforming the market”, and the target price was $250.

J.P. Morgan analyst Samik Chatterjee also gave Apple shares an “gain” rating, with a target price of $265. According to an Apple product availability tracker released by the company, although delivery times for high-priced Pro Max models have been shortened, the iPhone cycle has been shortened less than before. He pointed out in a research report on Sunday that the discovery confirmed his previous view that the initial weakness in iPhone 16 demand was just an “anomaly.”

In addition, Apple also announced on Tuesday the launch of the new iPad Mini, which is cheaper than other iPad models, but is also equipped with Apple Intelligence features.

Up to now, Apple's stock price has risen 22% this year, which is comparable to the increase in the S&P 500 index. The company plans to release fourth-quarter earnings after the stock market closes on October 31. Investors and analysts will keep a close eye on the latest developments in demand for new phones and other Apple devices equipped with artificial intelligence software.